Question 3- Please fill in the blanks ---### Problem 14-2A Classifying costs LO C2, C3The following calendar year-end information is taken from the December 31, 2017, adjusted trial balance and other records of Leone Company.| Expense Category | Amount ||-----------------------------------------|---------------|| Advertising expense | $28,750 || Depreciation expense—Office equipment | $7,250 || Depreciation expense—Selling equipment | $8,600 || Depreciation expense—Factory equipment | $33,550 || Factory supervision | $102,600 || Factory supplies used | $7,350 || Factory utilities | $33,000 || Direct labor | $675,480 || Indirect labor | $56,875 || Miscellaneous production costs | $8,425 || Office salaries expense | $63,000 || Raw materials purchases* | $925,000 || Rent expense—Office space | $22,000 || Rent expense—Selling space | $26,100 || Rent expense—Factory building | $76,000 || Maintenance expense—Factory equipment | $35,400 || Sales | $4,462,500 || Sales salaries expense | $392,560 |#### Notes:*Assume that the raw materials inventory account is used only for direct materials. Indirect materials are recorded in a factory supplies used account.---In this table, various expenses incurred by Leone Company during the year are listed along with their respective amounts. The expenses are categorized into various types such as advertising, depreciation, labor, rent, maintenance, etc. - **Advertising Expense**: Represents the cost incurred for promotional activities.- **Depreciation Expense**: Distribution of the cost of tangible assets over their useful life. Here, it includes costs for office equipment, selling equipment, and factory equipment.- **Labor Costs**: Divided into direct labor, which is directly involved in production, and indirect labor, which supports production operations indirectly.- **Factory-related Expenses**: Include supervision, supplies used, utilities, and maintenance costs, along with rent for the factory building.- **Office and Selling Expenses**: Include costs for office salaries, rent for office and selling space, and sales salaries. **Cost Classification Task****Objective:**Classify each of the costs as either a product or period cost. Then, classify each of the product costs as either direct materials, direct labor, or factory overhead, and each of the period costs as either selling or general and administrative expenses. Ensure all cells are completed without leaving any blank.**Cost Table:**| **Costs** | **Product Cost or Period Cost** | **Type of Product Cost** | **Type of Period Cost** ||------------------------------------------------|---------------------------------|--------------------------------|-----------------------------------|| 1. Advertising expense | | | || 2. Depreciation expense—Office equipment | | | || 3. Depreciation expense—Selling equipment | | | || 4. Depreciation expense—Factory equipment | | | || 5. Factory supervision | | | || 6. Factory supplies used | | | || 7. Factory utilities | | | || 8. Direct labor | | | || 9. Indirect labor | | | || 10. Miscellaneous production costs | | | || 11. Office salaries expense | | | || 12. Raw materials purchases | | | || 13. Rent expense—Office space | | | || 14. Rent expense—Selling space | | | || 15. Rent expense—Factory building | | | || 16. Maintenance expense—Factory equipment | | | || 17. Sales | | | || 18. Sales salaries expense | | | |Explanation of columns:- **Product Cost or Period Cost:** Determine if the cost is associated with the production (product cost) or with the overall operation (period cost).- **Type of Product Cost:** If classified as a product cost, identify whether it's direct materials, direct labor, or factory overhead.- **Type of Period Cost:** If classified as a period cost, identify whether it's a selling expense or a general and administrative expense.**Instructions:**1. Review each cost listed in the first column

Product cost is included within the inventory valuation, that is simply opposite in the case of…

assify each of the costs as either a product or period cost. Then, classify each of the product costs as either direct material por, or factory overhead and each of the period costs as either selling or general and administrative expenses. (Leave no c Product Cost or Period Cost Costs Type of Product Cost Type of Period Cost Advertising expense Depreciation expense-Office equipment Depreciation expense-Selling equipment Depreciation expense-Factory equipment Factory supervision Factory supplies used Factory utilities Direct labor Indirect labor 0, Miscellaneous production costs 1. Office salaries expense 2 Raw materials purchases 3. Rent expenseOffice space 4 Rent expenseSelling space 5. Rent expense-Factory building 5, Maintenance expense-Factory equipment 7 Sales B. Sales salaries expense